The Moderating Effect of Business Environment on Fiscal Incentives for Corporate Innovation

Overall, the business environment has a positive moderating effect on fiscal policies that incentivize corporate innovation. This means that a favorable business environment can enhance the effectiveness of government incentives aimed at promoting innovation within companies. For example, a business environment with streamlined regulations, strong intellectual property protection, and access to funding can magnify the impact of tax breaks or grants offered to businesses engaged in research and development.